The SARB will likely keep rates unchanged at the end of a two-day meeting that started on Monday, the first to be chaired by new Governor Gill Marcus.

South Africa’s inflation target remains in place but the government and central bank would soon start talks on the best way to manage prices.

S’s economy will probably contract by 2,1% in 2009, but recover next year, supported by a strong countercyclical policy response to the downturn.

South African Reserve Bank governor Gill Marcus will implement the policies already in place, ANC secretary general Gwede Mantashe said on Monday.

The government is still committed to halving unemployment and poverty by 2014, despite the global economic downturn, Trevor Manuel said on Tuesday.

South Africa will keep its policy of targeting inflation, which has helped to stabilise prices and encouraged economic growth.